Special Needs Trust By a Conservatorship Lawyer

California Conservatorship Lawyer: What You Need to Know About a Special Needs Trusts

Ensuring the care of loved ones with special needs is of utmost importance for their caretakers after they’ve passed away. Losing specialized benefits like Medi-Cal or Social Security because they inherited enough money to make them ineligible is a very real danger if proper special needs planning is not put in place. This is why creating a Special Needs Trust with a California conservatorship lawyer should be a top priority when creating your estate plan.

What is a Special Needs Trust?

Most people don’t realize that even a small amount of cash or other financial assets can disqualify an individual with special needs from the care and assistance they require. It is important that these assets do not pass directly to your loved one after you die. A Special Needs Trust, which is sometimes called a Supplemental Needs Trust, is the best way for your special needs loved one to keep their care and assistance, while also getting the benefit of the legacy you leave behind for them. These Trusts are designed in such a way that the assets it holds do not belong to your special needs beneficiary. They are instead owned by the Trust and managed by a Trustee of your choosing who is tasked with using the assets for the benefit of your loved one. Medi-Cal and Social Security do not count the assets in a Special Needs Trust, as they are not directly owned by your special needs loved one.

What can be done with the assets in a Special Needs Trust?

Assets in a Special Needs Trust can be spent in a number of ways, all of which benefit the individual with special needs. These include education, entertainment, recreation, home improvement, and in some cases certain medical expenses. It’s important to note that assets in a Special Needs Trust cannot be given directly to the special needs individual. If this happens, your special needs loved one will most likely be disqualified from receiving assistance.

What are some other issues with Special Needs Trusts?

In the event that you cannot choose a Trustee or if you can only leave behind a small sum of money, you may want to consider a Pooled Trust. Pooled Trusts are typically run by nonprofits and manage the Trust assets for special needs individuals. The nonprofit assigns a Trustee, which is usually a lawyer, to be responsible for managing the Trust assets on behalf of the individual. In just about every case, the Trustee and the non-profit are both heavily involved in the special needs community and understand what types of care and attention your loved one with special needs requires. There are fees and different types of services that come with Pooled Trusts, but they are often a good alternative to an individual Special Needs Trust if the situation calls for it.

If you have any questions about creating a Special Needs Trust, or if you’d like to have your current Special Needs Trust reviewed with a California conservatorship lawyer to make sure it still fits your situation, please call our office to set up an appointment. Please contact our Conservatorship and Estate Planning Attorneys at 800-244-8814 to schedule a consultation. 

If you have any further questions about estate planning and strategies to shield your wealth, or if you’d like to have your current asset protection plan reviewed to make sure it still meets your needs, please contact us at one of our offices located throughout the state of California 800-244-8814 to set up a consultation.